Any reasons not to cave into the fear?

admin    Uncategorized     agents

Hello everyone, I am about to begin my journey in property investment. However, reading the current headlines about how dire it will get for Buy to Let landlords both economically and legislatively and for property investment, in general, it is very worrying.

View Full Article: Any reasons not to cave into the fear?

Arrests made by HMRC in tax repayment frauds

admin    Uncategorized     agents

This case highlights the dangers of responding to emails (phishing schemes) and social media appeals promising tax rebates and otherwise ways of receiving large pay outs in return for information.

Four men were arrested in a coordinated operation across England by over 50 officers from the HM Revenue and Customs’ (HMRC) Fraud Investigation Service. The team simultaneously executed warrants in Harrogate, Torquay, London and Kent last week.

Large scale fraud

HMRC had identified a large-scale operation by the online fraudsters in a tax repayment scam. After a prolonged investigation the raids took place and 4 residential properties were searched. Valuable evidence was obtained: more than 20 mobile phones were appropriated, plus several computers and tablets.

HMRC is aware that criminals are attempting to obtain customers’ Government Gateway logins and other personal details, enabling them to register for Income Tax Self Assessment and submit bogus tax refund claims before pocketing the repayment.

Individuals, ranging from teenagers to pensioners, are being targeted on social media platforms by fraudsters seeking to ‘borrow’ their identities. In return, the individual is promised a cut of the tax refund ‘risk-free’.

Handing over sensitive personal information to criminals like this, even inadvertently, risks individuals involving themselves in tax fraud, and having to pay back the full value of the fraudulent claim.

Customers should therefore only deal with HMRC directly or through their tax advisor in relation to their Self Assessment tax refunds.

The investigation was carried out over a period of time when reports led to suspicions that fraud and money laundering was taking place. The perpetrators were using taxpayers’ stolen identities to commit Self Assessment and VAT repayment fraud against HMRC. It is understood that taxpayers were contacted online via social media and enticed initially to to take part.

Advice offered by HMRC

HMRC offered warning to taxpayers that they could inadvertently become involved in fraud schemes such as this by responding to temping offers coming up on emails and social media:

Peter Vivian, Assistant Director, Fraud Investigation Service, HMRC, says:

“We urge everyone not to share personal details such as bank account details, Government Gateway login credentials or National Insurance numbers.

“Your details may be used to obtain fraudulent tax repayments from HMRC and this could leave a debt associated to your tax record which you could be required to repay to HMRC.

“If your bank believes your account has been used to facilitate fraud, it could be closed without notice – making it difficult to open new bank accounts or obtain credit.

“Fraudsters routinely share hijacked identities with other criminals to commit further fraud and it may consequently be hard to regain control of your identity details.

“We believe this to be a calculated criminal attack against HMRC using hijacked personal information obtained from innocent members of the public.

“If something looks too good to be true, then it almost certainly is,” HMRC says.

You should never respond if someone approaches you, either online or in person, offering money in return for you lodging your personal details with them. Be very wary about providing personal details unless you are dealing with someone you know and trust or it’s a legitimate organisation you are dealing with.

Details of the arrests: A 24-years old man from Beckenham, a 30-year-old man from Harrogate, 28-year-old man from Torquay and a 25-year-old man from London, all arrested for fraud by false representation and money laundering.

A spokesperson says: HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.

HMRC investigations

HMRC conducts a wide range of investigations, some random, some targeted, into taxpayers’ affairs, from simple checks all the way though to a HMRC fraud investigation. The most serious HMRC tax investigations are normally conducted by The HMRC Fraud Investigation Service. These types of investigations can take a very long time to come to conclusion, they can be expensive and cause the taxpayers involved a significant amount of stress.

Coming under investigated by HMRC is therefore a difficult and costly process. Getting the right help during such a tax investigation, most likely from your accountant, can make the process a lot smoother, and also it may reduce the overall financial costs, in the long run.

View Full Article: Arrests made by HMRC in tax repayment frauds

Minister says Renters Reform Bill WILL be introduced ‘during this parliament’

admin    Uncategorized     agents

The Renters Reform Bill will be introduced during the current parliamentary session, the Secretary of State for Levelling Up, Housing and Communities has told MPs.

Simon Clarke (main pictured), who has been leading the department since his predecessor Michael Gove was sacked by Liz Truss following her leadership victory, told his Labour opposite number Matthew Pennycook (pictured) that introducing the Bill was a priority for the government.

This means that the necessary legislation will be introduced during the “next parliamentary session” which means before Spring 2024. A consultation on a key part of the Bill, a Decent Homes Standard for the private rented sector, has just closed.

But to stand any chance of becoming law, particularly given the current political machinations in Westminster and the looming General Election in January 2025, the Renters Reform Act needs to start its parliamentary journey therefore before Spring next year as most legislation takes approximately a year to pass scrutiny within both houses of parliament.

Mixed messaging

Pennycook told Clarke, referring to last week’s leak that Truss had considered scrapping the ban on Section 21 evictions to be included the Act, that: “Private renters need long-term security and better rights and conditions now, not chaotic mixed-messaging from a Government in disarray.

“So can the Secretary of State give a cast iron guarantee from the despatch box today that, if the Government is still standing come the time, a Renters Reform Bill will be brought forward in the next parliamentary session.”

Answering him, Clarke said he could confirm that the Bill would be brought forward “in the course of this parliament”.

View Full Article: Minister says Renters Reform Bill WILL be introduced ‘during this parliament’

Propertymark urges financial help for landlords to meet EPC targets

admin    Uncategorized     agents

Landlords will need financial and tax incentives for the government to reach its Net Zero ambitions and plans for EPC standards in the private rental sector (PRS), Propertymark says.

The organisation has made a written submission to the Department for Business

View Full Article: Propertymark urges financial help for landlords to meet EPC targets

Hunt reveals U-turn on all the mini-budget policies – except stamp duty

admin    Uncategorized     agents

Chancellor Jeremy Hunt has announced that the government will reverse almost all the tax measures announced in its recent growth plan.

While it will still go ahead with cutting stamp duty, a planned 1p cut to the basic rate of income tax will now be shelved “indefinitely” while the energy price guarantee will be watered down. 

Help with energy bills was due to apply universally to every household for two years but Hunt says this will only last in its current form until next April. 

The Treasury will now conduct a review to study how best to provide targeted support to households and businesses beyond that time.

In a special broadcast, the Chancellor explained: “Whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms introduced in 2017 and 2021, a new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.”

Income tax U-turn

He said it was not right to borrow to fund the income tax cut, which would have reduced the rate to 19%. 

Last week, Liz Truss performed another humiliating U-turn by announcing she would not cancel the scheduled rise in corporation tax from 19% to 25% next year. The Prime Minister’s stamp duty cut was also universally panned by mortgage brokers who labelled it a catalyst for stimulating an overheated property market. Then chancellor Kwasi Kwarteng raised the threshold before stamp duty is paid to £250,000 and for first-time buyers, to £425,000.

The Chancellor, who is a landlord, will deliver the full Medium-Term Fiscal Plan to be published alongside a forecast from the independent Office for Budget Responsibility on 31st October.

Reaction

Nathan Emerson, CEO of Propertymark, which represents UK estate and letting agents, says: “The Chancellor’s commitment to the Stamp Duty thresholds that better represent house prices will certainly help to restore some market stability and confidence which has taken a hit.

“Mortgage rates were already rising and we hope the wider announcements made today will translate into a settling down of that trajectory so buyers can proceed with more confidence that some of those additional lending costs will still be offset by Stamp Duty savings.”

Lawrence Bowles, director of research at Savills, comments: “In many ways, the Chancellor’s announcement this morning was the best feasible outcome for the housing market.

“Almost all of the tax cuts announced in the Truss/Kwarteng “mini” Budget three weeks ago have gone. Even measures that had been announced previously, such as the 1p cut to the basic rate of income tax, have been shelved.

“Reversing these cuts drastically reduces the size of the financial black hole the Government has to clamber its way out of. That should reassure global financial markets that the UK remains a safe place to invest, bringing gilt yields down.

“This, in turn, will reduce the need for the Bank of England to hike base rates. It means we can expect to see mortgage rates peak lower and fall faster once we pass peak inflation.

“But some tax changes remain: most pertinently, the cut to stamp duty. This cut means home movers and investors could save up to £2,500 on home purchases. First-time buyers could save up to £11,250.

“While these sums may not be enough on their own to encourage someone to move, they may give a push to any households sitting on the fence. In particular, households facing the prospect of remortgaging may take advantage of the stamp duty cut to move – their mortgage costs are going up either way, after all.

“It may be a long time until we see mortgage rates back to where they were in recent years. But, for now, we do expect to see some of the existing downward pressure on house prices and transactions to be tempered – if only a little.”

View Full Article: Hunt reveals U-turn on all the mini-budget policies – except stamp duty

U-turn Emergency Statement

admin    Uncategorized     agents

Under pressure from the nervous financial markets and having been locked away in Chequers all weekend with PM Lizz Truss, the Chancellor of the Exchequer, Jeremy Hunt has given an emergency statement to the country.

This is an effort to stabilise the markets and inject some confidence

View Full Article: U-turn Emergency Statement

Judge declaring anything in advance as a DEPOSIT?

admin    Uncategorized     agents

Has any Judge let Tenants on a Section 8 countersue by deciding money in advance is a DEPOSIT that should have been protected?

Even after Johnson vs Old 2013 He appears satisfied the contract says money isn’t a deposit for any damages etc but possibly still wants to set a ‘president’

View Full Article: Judge declaring anything in advance as a DEPOSIT?

Landlords in Wales forced to give 6 months’ notice

admin    Uncategorized     agents

Last minute changes to the housing eviction law in Wales will see more landlords having to give their tenants six months’ notice.

That’s a change from the rules which enable a landlord to hand a tenant with a periodic tenancy just two months’

View Full Article: Landlords in Wales forced to give 6 months’ notice